EvoNext Holdings S.A.

Evolva reported H1 2023 total revenues of CHF4.5 million and product-related revenues of CHF4.3 million, which management said represented 11% growth excluding Vanillin and EverSweet. Gross contribution margin rose to 30.4% from 10.9% last year, gross contribution increased to positive CHF1.3 million, and adjusted EBITDA improved by CHF1.2 million to negative CHF6.3 million. Cash ended June at CHF4.4 million, with CHF5.2 million of available financing lines; total assets fell to CHF53 million from CHF131 million, mainly due to an extraordinary impairment charge of CHF68.3 million, including CHF66.3 million of intangible assets. For 2023, management expects revenue in the range of lower double-digit millions in Swiss francs, further EBITDA and cash flow improvement, and they still aim for EBITDA and cash breakeven in 2025 if going concern is secured; midterm they now expect revenues of up to CHF45 million at a higher profitability level than previously planned.

Christian Wichert framed the quarter as operationally stronger despite major disruption, highlighting profitable growth in Valencene, Nootkatone and Resveratrol, a higher gross contribution margin, and new commercial initiatives such as Natural Nootkatone, Juneo, Larally and the Grace Breeding partnership. His tone was cautious but constructive: he repeatedly emphasized cash preservation, the need to postpone activities into 2024, and the ongoing strategic review. He also said the sales pipeline is building and expects accelerated growth in the second half and beyond, while acknowledging that the financing situation has absorbed significant management attention.

Carsten Daweritz focused on the financial improvement in margins and cash usage. He said gross contribution rose to positive CHF1.3 million, recurring operating expenses fell by CHF2.1 million due to cost efficiency initiatives, and adjusted EBITDA improved to negative CHF6.3 million; he also pointed to CHF4.4 million of cash and CHF5.2 million of available financing lines. He explained that total assets dropped to CHF53 million after a CHF68.3 million impairment charge, with CHF66.3 million tied to intangibles, and said lower inventory by CHF2.5 million and reduced capex helped cash flow. He added that second-half cash use should be higher than the first half because of capex for the new CMO contract, estimating around CHF6 million to CHF7 million.

Analysts focused on cash burn, the Nice & Green financing structure, and whether the Vanillin delay would hurt customers. In response to a question on second-half cash use, management said H2 will require slightly more cash than H1 because of capital expenditures for the new CMO contract, estimating around CHF6 million to CHF7 million, and explained that additional Nice & Green funding depends on share sales thresholds and, later, market capitalization conditions. Asked about guidance, Christian Wichert clarified that lower double-digit millions means low teens and said Vanillin production has been moved to 2024, likely Q1, both to preserve cash and to secure better cost conditions. On customers, he said reactions have generally been supportive and understanding despite disruptions, though some projects are taking longer because of uncertainty.